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Factors influencing adoption of electronic medical records
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Introduction
This case study will show how a facility can pay-for-performance stimulate or encourage electronic medical record adoption, also will demonstrate the financial and human resource costs involved in implementing an electronic medical record in a small medical practice versus in a large-scale healthcare system. We will also look at identifying various challenges that are present for small practices in implementing an electronic medical record. As well as focus on the differences from the affects of a large healthcare system.
Pay-for-Performance
Pay-for-performance (P4P) was brought about as a way to tie the provider and Medicare together to measure the performance based on the payment. As one employer coalition spokesperson has stated, “It is our belief that this approach to physician compensation will improve the quality of health care that patients receive and will, ultimately, lower overall costs of care (Christianson 2006). ” The incentive is to get the provider to focus on the patient by providing quality care. The Dryden Family Medicine (DFM) center accomplished the immunization goal by 95 percent in the time allotted. Reaching this criterion at such a fast pace placed them in the number one spot and earned them a nice bonus package. As stated by the New York times “P4P had no visible effects on processes of care or on hypertension-related or clinical outcomes”. As far as any high blood pressure or other types of chronic disease went, P4P had no outcome. There was a stimulus package created to encourage doctors to switch over to EMRs by the year 2015. The total that was allowed by the federal government was $19 billion. It will be up to the doctor or facility, which EMR program would best fit their...
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Christianson, J.B, Knutson, D.J, Mazze, R.S, (February 21,2006) GE, Ford, UPS, P&G, Verizon, others back new pay-for-quality initiative for physicians. NCQA News.http://www.ncbi.nlm.nih.gov/pmc/articles/PMC2557129/
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Each model presents different types of earning incentives for physicians to provide cost effective care which improves clinical outcome.
With the passage of the Affordable Care Act (ACA), the Centers for Medicare and Medicaid Services (CMS) has initiated reimbursement based off of patient satisfaction scores (Murphy, 2014). In fact, “CMS plans to base 30% of hospitals ' scores under the value-based purchasing initiative on patient responses to the Hospital Consumer Assessment of Healthcare Providers and Systems survey, or HCAHPS, which measures patient satisfaction” (Daly, 2011, p. 30). Consequently, a hospital’s HCAHPS score could influence 1% of a Medicare’s hospital reimbursement, which could cost between $500,000 and $850,000, depending on the organization (Murphy, 2014).
113-117. Retrieved April 21st, 2011 from website: http://secure.cihi.ca/cihiweb/products/physicians_payment_aib_2010_f.pdf. D. Squires, The Commonwealth Fund, and others, International Profiles of Health Care Systems, The Commonwealth Fund, June 2010. Retrieved April 20th, 2011 from website: http://www.commonwealthfund.org//media/Files/Publications/Fund%20Report/2010/Jun/1417_Squires_Intl_Profiles_622.pdf. Johns, M. L. & Co. (2010). The 'Standard' of the 'Standard'.
Ranking 37th — Measuring the Performance of the U.S. Health Care System. Christopher J.L. Murray, M.D., D.Phil., and Julio Frenk, M.D., Ph.D., M.P.H.
Healthcare payers agree with the idea of Evidence-Based Medicine (EBM) to advocate for pay-for-performance in provider reimbursement on quality and efficiency. The fundamental system that most payers use to compensate physicians and provider associations embodies enticements for excellence and efficiency. Reimbursement can be affected by the P4P approach and other factors such as the claims process, out-of-network payments, legislation, audits and denials. While the same P4P approaches are attempts to commence incentives and new strategies into the healthcare, the underlying arrangement of the compensation system produces many per...
The current health care reimbursement system in the United State is not cost effective, and politicians, along with insurance companies, are searching for a new reimbursement model. A new health care arrangement, value based health care, seems to be gaining momentum with help from the biggest piece of health care legislation within the last decade; the Affordable Care Act is pushing the health care system to adopt this arrangement. However, the community of health care providers is attempting to slow the momentum of the value based health care, because they wish to maintain their autonomy under the current fee-for-service reimbursement system (FFS).
Yong, Pierre L., Robert Samuel Saunders, and LeighAnne Olsen. The Healthcare Imperative: Lowering Costs and Improving Outcomes : Workshop Series Summary. Washington, D.C.: National Academies, 2010. Print.
Chun-Ju Hsiao, P. a. (2014, January 17). Use and Characteristics of Electronic Health Record Systems Among Office-based Physician Practices: United States, 2001–2013. Retrieved April 24, 2014, from CDC: http://www.cdc.gov/nchs/data/databriefs/db143.htm
On February 17, 2009, President Barack Obama signs into law the American Recovery and Reinvestment Act of 2009 (ARRA). The law promotes electronic medical records (EMR) and infrastructure development, such as reimbursement-based pay, to cut health care costs (Frequently Asked Questions, 2009). Likewise, the ARRA is restructuring Medicare disbursements to reimburse for quality not quantity. While the law does not mandate EMR use, the federal government has set aside twenty billion dollars to help in the development of a strong health information technology infrastructure. Title IV states, “NO INCENTIVE PAYMENT IF FIRST ADOPTING AFTER 2014” (American Recovery and Reinvestment Act of 2009, 2009). In times of economic turmoil, hospitals and physicians, who are not hospital-based, can receive incentive payments (Frequently Asked Questions, 2009). So, most institutions will comply with the restructuring and use EMR’s, even though there are pros and cons.
The Meaningful Use Incentive program was designed to ensure that EHRs are implemented and used in the appropriate manner by increasing healthcare quality while lowering healthcare costs. However, it is important to discern if the Meaningful Use incentive program is working appropriately because in 2015, if Medicare eligible providers (EPs) do not switch to EHRs, they will be penalized by reducing their fee schedule by 1.5% and by 2% for subsequent years (CMS, 2014). On a broader note, this topic is also important for healthcare administrators that have not yet invested in an EHR because if the Meaningful Use Incentive Program works in such a way that reduces cost and improves patient care, the implementation of an EHR should do the same as long as the MU program is followed. Furthermore, provi...
...lthcare system is slowly shifting from volume to value based care for quality purposes. By allowing physicians to receive payments on value over volume, patients receive quality of care and overall healthcare costs are lowered. The patients’ healthcare experience will be measured in terms of quality instead of how many appointments a physician has. Also, Medicare and Medicaid reimbursements are prompting hospitals, physicians and other healthcare organizations to make the value shifts. In response to the evolving healthcare cost, ways to reduce health care cost will be examined. When we lead towards a patient centered system organized around what patients need, everyone has better outcomes. The patient is involved in their healthcare choices and more driven in the health care arena. A value based approach can help significantly in achieving patient-centered care.
The contentious debate about our healthcare system is an epitome of the ongoing political circus in America. With the 2012 elections looming just around the corner, we can expect the vitriol to rise rapidly. Our country spends twice as much on health care per capita compared to other developed countries. The current system is so dysfunctional and projected spending will increase every year, putting an unbelievable strain to our fragile economy. Majority of health care dollars spending are channeled on to patients with chronic illnesses, many of which can be prevented. Unfortunately, medical doctors practicing preventive care are being squeezed out of the equation. The shortage of primary care doctors in America is inevitable because of limited income, lesser prestige, and fewer opportunities.
The balance between quality patient care and medical necessity is a top priority and the main concern of many of the healthcare organizations today. Due to the rising cost of healthcare, there has been a change in the focus of reimbursement strategies that are affecting the delivery of patient care. This shift from a fee-for-service towards a value-based system creates a challenge that has shifted many providers’ focus more directly on their revenue. As a result, organizations are forced to take a hard look at the cost of services they are providing patients and then determining if the services and level of care are appropriate for the prescribed patient care.
In 2015, the Centers for Medicaid and Medicare Services (CMS) released the Medicare Access and CHIP Reauthorization Act of 2015 (MACRA) which implements the final rule which offers financial incentives for Medicare clinicians to deliver high-quality patient centered care.5 Essentially, taking the time to learn the patient’s goals and treatment preferences allows for the patient to walk away from the medical treatment or service feeling understood and cared for by the provider.4 Thus, resulting in a better, more comprehensive plan of care. Policy makers are hopeful that the new incentive-based payment system will accelerate improvement efforts.